www.herenciaresources.com
Herencia Resources plc is a resources company listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange with a focus on developing the Paguanta Project in northern Chile and advancing other project opportunities with the aim of adding value for shareholders.
The Paguanta Project comprises the Patricia zinc-silver-lead-gold Mineral Resource and the Doris copper-silver and La Rosa copper targets. The Total Mineral Resource at Patricia stands at 3.5Mt at 4.6%Zn, 1.46%Pb, 93g/t Ag and 0.23g/t Au (2% Zn cut-off).
During 2011 Herencia plans to undertake a Feasibility Study into the Patricia Mineral Resource and complete 15,000m of diamond drilling at Patricia, Doris and La Rosa. The Company is also actively pursuing quality JV opportunities within South America.
Herencia has the backing of some major resources identities including Nyrstar, the world’s biggest zinc smelting group, who hold 10% equity in Herencia.
Herencia Resources starts diamond drill programme at Paguanta zinc-silver-lead-gold project
Herencia Resources (AIM: HER) has commenced a 3,500 metre diamond drill programme at its Paguanta zinc-silver-lead-gold project targeting potential high grade extensions to the known mineralisation after the previous drill programme returned high grade assay results in 2008.
The drilling program will likely run until May, with all assay results planned to be returned by June 2010.
All previous samples from within the existing mineral resource envelope have now been submitted to the laboratory for gold analysis. Previously, only samples with silver grades in excess of 50 ppm (parts per million) were assayed for gold. The company anticipated the gold assay results to be available in mid-March 2010.
“We remain on track to achieve our goal of completing our drilling program by May, receiving assay results regularly between April and June and delivering an update to our mineral resource estimate by mid-2010. The results of this will form the basis for making a decision on moving to a feasibility study phase in the second half of 2010,” said Managing Director of Herencia Resources Michael Bohm.
The Paguanta zinc-silver-lead-gold project Northern Chile is the company’s primary focus. The junior exploration company hired resources consulting firm Runge Limited which completed the design for the project’s next drilling program.
Of the 10 holes drilled previously into the Patricia zone at PAguanta, eight intersected mineralisation, four of which returned high zinc-silver-lead grades. The highest individual grades were 15.75% zinc, 447pm silver and 5.58% lead, while surface rock chip sampling has extended the zone of anomalous mineralisation to the east with best results of 1515 and 1075 g/t silver.
The scoping study of the Patricia deposit estimated the total mining inventory at 2.67 Mt (million tonnes) and the underground mining inventory at 1.24 Mt grading 5.28% zinc, 1.84% lead and 102 ppm silver. Initial potential mine life is currently estimated at five and a half year, which could be extended with more drilling. Capital costs are estimated at US$55.6 million and site operating costs at US$55.32/t (tonne).
The project comprises an indicated and inferred mineral resource of 3.15 Mt at 3.9% zinc, 1.3% lead and 74 g/t (grammes per tonne) silver including a higher grade component of 1.01 Mt at 6.6% zinc, 2.2% lead and 119pm silver.
The company has recently raised £1.37 million through an issue of 250 million new shares for Paguanta and its adjacent La Rosa porphyry-copper prospect.
